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KEMPER CORPORATION ANNOUNCES PLAN TO DIVEST PRIMARY PROPERTY-CASUALTY INSURANCE BUSINESSES

 KEMPER CORPORATION ANNOUNCES PLAN TO DIVEST PRIMARY
 PROPERTY-CASUALTY INSURANCE BUSINESSES
 LONG GROVE, Ill., Nov. 4 /PRNewswire/ -- Kemper Corporation (NYSE: KEM) announced today that it intends to exit the primary property-casualty insurance business as part of its strategic plan to focus on its core businesses. As a result, Kemper Corporation plans to sell its two primary property-casualty insurance subsidiaries, Economy Fire & Casualty Company and Federal Kemper Insurance Company.
 "Both Economy and Federal Kemper are profitable companies with highly experienced and capable management teams, dedicated employees, unique market niches, quality service and strong distribution networks," said David B. Mathis, chairman and chief executive officer of Kemper Corporation. "The decision to exit the primary property-casualty insurance business is the result of a thorough strategic evaluation and is founded in our mission of enhancing stockholder value."
 "This action reflects our decision to shift the focus of Kemper Corporation," Mathis said. "At the same time, it should provide Economy and Federal Kemper with the opportunity to pursue their strategies of continued profitability and growth in their respective markets.
 "In addition, by selling the companies, Kemper Corporation will be able to concentrate its capital resources on its remaining businesses and thereby strengthen them."
 Kemper Corporation said it is optimistic that the unique market niches, quality service and strong distribution networks offered by Economy and Federal Kemper will generate significant interest among potential acquirers. The company has retained Smith Barney, Harris Upham & Co. as financial advisors for this assignment. Any actual sale transaction will be subject to Kemper Corporation board and regulatory approvals.
 Both Economy Fire & Casualty Company, based in Feeeport, Ill., and Federal Kemper Insurance Company, based in Decatur, Ill., are regional insurers that write mostly personal auto and homeowners business through independent agents and brokers. Economy is the fourth largest personal lines insurance company in Illinois; it ranks among the top 100 auto and homeowners underwriters in the United States based on net premiums written. Federal Kemper ranks among the top 150 auto and homeowners insurers nationally.
 As of June 30, 1992, the two property-casualty insurance companies had combined assets of $889.2 million and stockholders' equity of $349.5 million. Kemper Corporation's consolidated assets and stockholders' equity at that date totaled $15.1 billion and $1.8 billion, respectively.
 Kemper Corporation is a nonoperating holding company with subsidiaries in asset management, securities brokerage, life insurance, reinsurance, property-casualty insurance and risk management services.
 -0- 11/4/92
 /CONTACT: Janice Kalmar, 708-540-4465, or Ira Nathanson, 708-540-4463, both of Kemper/
 (KEM) CO: Kemper Corporation ST: Illinois IN: INS SU:


KD -- NY079 -- 2697 11/04/92 17:07 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 4, 1992
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